Business Advisory and Tax Consulting

for companies doing business in the Philippines

Offshore Outsourcing Industry in the Philippines

News Articles for Outsourcing Industry

The Philippines’ outsourcing industry is composed of shared services offices and independent companies (captive).  Large multinational companies outsource in-house parts of their operations to the Philippines; international 3rd party providers offer services to companies worldwide from the Philippines and independent Philippine companies provide services to international clients. Through these options many offshore outsourcing services performed in the Philippines can be offered to companies of all sizes and needs.  

A wide range of outsourcing segments can already be found in the Philippines' outsourcing industry. The 2 main areas of expertise are Contact Centers and Business Process Outsourcing (BPO). The Philippines ranks second in outsourcing worldwide, just after India.  However, software development, medical & legal transcription, animation and engineering design outsourcing have also grown steadily over the past years. 

The outsourcing or BPO industry is considered as one of the fastest growing industries in the world. International investment consultancy firm McKinsey & Co. predicts that the demand for outsourcing services will reach $180 billion in 2010, with the customer contact services, finance and accounting, and human resource sub-sectors being the bulk of that.  When it comes to the trend in primary business requirements, industry experts are seeing a shift from cost-effectiveness to skills quality and competence. This development continues to strengthen the Philippines' position as an emerging global leader in the BPO and KPO industry.   

The BPO boom in the Philippines is currently led by demand for offshore call or contact centers.  The Philippines raked in offshore service generating revenues of $2.1 billion in 2006, placing third behind India and China.  That's up 62% over the $1.3 billion it gained in 2004, and a huge increase from the start of the decade when the outsourcing industry in Manila employed just 2,400 people and the industry had revenues of merely $24 million. It is estimated that 200,000 people were working in 120 BPO (mostly Contact Centers) in the Philippines in 2006. Overall, Philippine outsourcing and BPO is projected to earn US$11 billion and employing 1 million people by the year 2010.

The recent growth spurt in the outsourcing industry in the Philippines has been fueled not by traditional low-value-added call centers but more higher-end outsourcing or knowledge process outsourcing (KPO) based such as legal services, accounting, business analysis, Web design, medical transcription, software development, animation, and shared services. Though call centers still form the largest part of the sector, the Philippines has begun leveraging its creative design talent pool, vast amount of lawyers, and its CPA our general accountants.  

To achieve and sustain this rapid growth, the Philippine government is offering significant fiscal and non-fiscal incentives to attract foreign direct investment in the outsourcing industry as part of the 2006 Investment Priorities Plan. The IPP was prepared by the Board of Investments (BOI) of the Philippines, as the lead agency in promoting investments, focused on the sectors identified in the Medium-Term Philippine Development Plan (MTPDP) 2004-2010 (PBOI 2006).  Another government agency in the Philippines that offers tax breaks and incentives is PEZA. 

Many BPO facilities are located in the following areas:

• Metro-Manila
• Cebu City
• Baguio City
• Cagayan de Oro
• Clark
• Dagupan City
• Davao City
• Dumaguete City
• Lipa City
• Iloilo City
• Legazpi City 
  

Most Common Offshore Outsourcing in the Philippines

• Contact or Call Centers Outsourcing
• Software Development Outsourcing
• Web and Graphic Design Outsourcing
• Animation Outsourcing
• Game Development Outsourcing
• Online Marketing - SEO & SEM Outsourcing
• Engineering Design & Achitecture Outsourcing
• Medical Transcription Outsourcing
• Legal Transcription Outsourcing
• Finance & Accounting Outsourcing
• HR Administration Outsourcing
   

Philippines Outsourcing Workforce

 

30-A Chatham House
116 Valero, cor. Rufino, Makati, Metro-Manila
Philippines

Phone: (+63)2-856-7517
Fax: (+63)2-856-7720
Mobile: (+63)917-8662266
Mobile: (+63)919-6964680

info@kittelsoncarpo.com